April 27, 2025 • 6 mins
Cettire, the luxury fashion marketplace has suffered its first loss in 3 years after it geot squeezed left, right and centre
Tesla has seen its profits plummet 71%... but its share price still jumped more than 5%
OpenAI, the owner of ChatGPT wants to buy Google’s Chrome… if Google is forced by the courts to sell it
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
This is what the Flux.
Speaker 2 (00:06):
I'm Brett and I'm justin and it's Monday to twenty
eighth of April.
Speaker 1 (00:10):
Jusee boyd, the countdown is on. And no we're not
talking about the federal election. We're obviously speaking about the
RBA's cash rate announcement in just a few weeks time.
In fact, Westbax says that a cash rate drop is
a done deal if inflation numbers are in line with expectations.
And Jessie boy, you don't hear banks throwing around the
done deal words very often, do you, So they must be.
Speaker 2 (00:31):
Pretty down confident, a big collboy weft pacus out. As
we roll into the end of the month at April,
this is the time when you need to get your
financial house in order. One of the things you should
be doing every single month is checking your credit score
to see if it's gone up, if it's gone down,
and if there have been any applications made it might
not have been yours. We have it all covered in
the Flux app with our credit health check ap Make
sure to download the Flux app and check your credit
(00:52):
score today.
Speaker 1 (00:52):
Three revolutionary stories today, Jusi boy, Let's do it for
our first, Satire, the luxury fashion marketplace has suffered its
first lot in three years after it continues to get
squeezed left, right and center.
Speaker 2 (01:04):
Lots of attention on Setire right now be Man and
not the good type, so tell me more well.
Speaker 1 (01:08):
Setire was founded in twenty seventeen here in Australia and
bills itself as a luxury online fashion retailer.
Speaker 2 (01:15):
Yeah, it stocks everything from Gucci loafers which I know
you love, to save the rent, clutches and many many
more products.
Speaker 1 (01:21):
In fact, it sells more than five hundred thousand products
a year from more than twenty five hundred luxury brand
and be Man.
Speaker 2 (01:27):
Setire grew its business by offering luxury goods at low
wer prices.
Speaker 1 (01:32):
A bit like a luxury outlet of the Internet.
Speaker 2 (01:34):
And that's because it operates in the gray market.
Speaker 1 (01:36):
In other words, it sources luxury products from outside traditional
brand channels.
Speaker 2 (01:40):
But now be Man. Setires reported a real ugly quarter yep.
Speaker 1 (01:44):
It's sales landed at two hundred and sixty million bucks,
which was basically unchanged from last year.
Speaker 2 (01:49):
But the biggest hit was that Setire suffered its first
loss in three years.
Speaker 1 (01:53):
YEP, it copped a four point seven million dollar loss
for the March quarter. Now, might I remind you that
at its peak, Setire devaluation of two billion dollars, but now.
Speaker 2 (02:02):
Its share prices dropped more than twenty five percent last
week and its valuation is sitting just at two hundred
and fifty million.
Speaker 1 (02:08):
Dollars, a monstrous fall from the glory years.
Speaker 2 (02:11):
The main reason for the four B man Setire is
copying margin compression everywhere that it is.
Speaker 1 (02:16):
So what is the key learning here?
Speaker 2 (02:18):
Margin compression is what happens when a business's costs rise
faster than its revenues.
Speaker 1 (02:22):
For Setire, it's the worst of both retail worlds.
Speaker 2 (02:25):
Yeah, their costs are up, their revenues are flat, and
discounts are hurting their profits as well. So b man,
that means even when Setaire do make a sale, they're
earning less profit from every dollar.
Speaker 1 (02:35):
And does it boit? Margin compression is a major red
flag for investors.
Speaker 2 (02:39):
Yeah, it shows that the business is either losing its
pricing power or it can't control its costs at all.
Speaker 1 (02:44):
And in retail post COVID, it's not about growth it
or costs anymore. It's really about sustainable profit.
Speaker 2 (02:50):
So it's no surprise Setaire's share price dropped twenty five
percent just last week.
Speaker 1 (02:54):
For our second story, Tesla has seen its profits plummet
seventy one percent, but it's share price still jumped more
than five percent.
Speaker 2 (03:01):
Jeez, that sounds strange. There must be more to this story,
be man, so tell me more. Well.
Speaker 1 (03:05):
We know, Tesla is the og electric vehicle poster child.
Speaker 2 (03:08):
YEP. It was founded back in two thousand and eight
and co founded by the zany, unhinged and wild Elon Musk.
Speaker 1 (03:13):
And we've already spoken about how Tesla has battled with
a decline in sales, So be.
Speaker 2 (03:18):
Man, it's fair to say we didn't realize how bad
things were looking.
Speaker 1 (03:21):
We're talking to seventy one percent drop in profits compared
to last year, and that is down to four hundred
and nine million US dollars.
Speaker 2 (03:28):
And be man, they had a thirteen percent slide in
car deliveries as well, which is their worst result since
twenty twenty two.
Speaker 1 (03:34):
And while the cars haven't changed, the vibe around the
brand definitely has.
Speaker 2 (03:37):
Yeah, plenty of people reckon Elon's political escapades have rubbed
Tesla buyers up the wrong.
Speaker 1 (03:42):
Way, as well as a whole lot more competition in
this ev market.
Speaker 2 (03:46):
Yeah, get this. Tesla sales dropped sixty percent in Germany
this January.
Speaker 1 (03:49):
And they were down thirty percent here in Australia.
Speaker 2 (03:51):
So be man. It's no surprise that Elon Musk will
now be stepping back from the US Government's Department of
Government Efficiency aka DOGE, and I'm in the back of
this news. Tesla's share price actually jumped five.
Speaker 1 (04:03):
Percent because finally Elon can focus on Tesla and hopefully
for investors, stay away from the headlines. So what is
the key learning here When a CEO is a huge
part of their company's brand, that every move can shake
public opinion and perception for better or worse. In Tesla's case,
Elon Musk has ridden the highs and lows of Tesla
since it launched, Like the time he posted that he
(04:23):
would take Tesla private for four hundred and twenty US
dollars per share a.
Speaker 2 (04:27):
Reference to smoking marijuana, all.
Speaker 1 (04:29):
The time he threw a sledgehammer at his cyber truck
to demonstrate its bulletproofness.
Speaker 2 (04:34):
Man. With his focus on DOGE the Government Department, investors
have grown concerned over his lack of focus.
Speaker 1 (04:39):
And the impact that Doge is having on brand Musk.
Speaker 2 (04:42):
Which is effectively brand Tesla.
Speaker 1 (04:45):
So Jazi boy. Since Musk joined Donald Trump in the government,
Tesla's share price has taken a whack of near forty percent,
and these poor.
Speaker 2 (04:51):
Profit announcements aren't building confidence in the brand either.
Speaker 1 (04:54):
So clearly Muskie Musk understands its time to focus on
his companies before it's potentially too late.
Speaker 2 (05:00):
For our third and final story, open Ai, the owner
of chat JPT, wants a slice of Google's Chrome if
Google's forced to sell Chrome by the courts.
Speaker 1 (05:09):
Shots have been fire, Tell me more, juzzy boy.
Speaker 2 (05:12):
Okay, so be man. We spoke last week about how
US courts have ruled Google has illegal monopolies.
Speaker 1 (05:17):
Both in online search as well as advertising technology and.
Speaker 2 (05:20):
Be man, Well, it's not clear what the outcome will
be from the judge. It could result in the breakup
of Google.
Speaker 1 (05:25):
And now OpenAI has entered the chat Yeah.
Speaker 2 (05:28):
Open AI's head of products said they'd be keen to
buy Google's Chrome if the court forced Google to sell it.
Speaker 1 (05:33):
Now OpenAI says it previously offered to integrate Google Search
into chat JBT, but Google said nowe jose.
Speaker 2 (05:39):
Yep we've got Gemini and be man. In the hypothetical
case that open ai did buy Chrome, it could be
a game changer.
Speaker 1 (05:46):
Well, it would allow them to skip the middle man
like Google when it comes to getting customers.
Speaker 2 (05:51):
So what is the key learning here?
Speaker 1 (05:52):
Vertical integration happens when a company controls multiple stages of
its supply chain or product delivery.
Speaker 2 (05:59):
Think of the example of a coffee company. If they're
vertically integrated, they might own the farm, the roastery, and
the cafe as well.
Speaker 1 (06:05):
And for technology, it's when the company owns the backhand software,
the customer facing platform, and the underlying data as well,
and a man.
Speaker 2 (06:11):
Google is the poster child for vertical integration.
Speaker 1 (06:14):
It owns the Chrome browser, it owns the Android operating system,
it owns Google Search Engine.
Speaker 2 (06:19):
And baman. That kind of integration is super powerful, but
it's also what regulators argue is anti competitive.
Speaker 1 (06:24):
On the other hand, open ai right now relies on
partnerships to reach those users.
Speaker 2 (06:28):
Through Microsoft's Edge browser or their iOS integrations.
Speaker 1 (06:32):
So if OpenAI did acquire Chrome, it would gain a
direct user base, but b man.
Speaker 2 (06:37):
It kind of feels like open ai would start building
its vertically integrated empire of its own.
Speaker 1 (06:42):
So while this may sound good in theory, if you
bet that the regulators will be having none of this.
Speaker 2 (06:47):
Buck sam Every single month your credit score gets updated,
to make sure to check it out. See your credit
score in April.
Speaker 1 (06:53):
Thanks for listening, and we'll see you on Wednesday.
This is what the Flux.
Speaker 2 (00:06):
I'm Brett and I'm justin and it's Monday to twenty
eighth of April.
Speaker 1 (00:10):
Jusee boyd, the countdown is on. And no we're not
talking about the federal election. We're obviously speaking about the
RBA's cash rate announcement in just a few weeks time.
In fact, Westbax says that a cash rate drop is
a done deal if inflation numbers are in line with expectations.
And Jessie boy, you don't hear banks throwing around the
done deal words very often, do you, So they must be.
Speaker 2 (00:31):
Pretty down confident, a big collboy weft pacus out. As
we roll into the end of the month at April,
this is the time when you need to get your
financial house in order. One of the things you should
be doing every single month is checking your credit score
to see if it's gone up, if it's gone down,
and if there have been any applications made it might
not have been yours. We have it all covered in
the Flux app with our credit health check ap Make
sure to download the Flux app and check your credit
(00:52):
score today.
Speaker 1 (00:52):
Three revolutionary stories today, Jusi boy, Let's do it for
our first, Satire, the luxury fashion marketplace has suffered its
first lot in three years after it continues to get
squeezed left, right and center.
Speaker 2 (01:04):
Lots of attention on Setire right now be Man and
not the good type, so tell me more well.
Speaker 1 (01:08):
Setire was founded in twenty seventeen here in Australia and
bills itself as a luxury online fashion retailer.
Speaker 2 (01:15):
Yeah, it stocks everything from Gucci loafers which I know
you love, to save the rent, clutches and many many
more products.
Speaker 1 (01:21):
In fact, it sells more than five hundred thousand products
a year from more than twenty five hundred luxury brand
and be Man.
Speaker 2 (01:27):
Setire grew its business by offering luxury goods at low
wer prices.
Speaker 1 (01:32):
A bit like a luxury outlet of the Internet.
Speaker 2 (01:34):
And that's because it operates in the gray market.
Speaker 1 (01:36):
In other words, it sources luxury products from outside traditional
brand channels.
Speaker 2 (01:40):
But now be Man. Setires reported a real ugly quarter yep.
Speaker 1 (01:44):
It's sales landed at two hundred and sixty million bucks,
which was basically unchanged from last year.
Speaker 2 (01:49):
But the biggest hit was that Setire suffered its first
loss in three years.
Speaker 1 (01:53):
YEP, it copped a four point seven million dollar loss
for the March quarter. Now, might I remind you that
at its peak, Setire devaluation of two billion dollars, but now.
Speaker 2 (02:02):
Its share prices dropped more than twenty five percent last
week and its valuation is sitting just at two hundred
and fifty million.
Speaker 1 (02:08):
Dollars, a monstrous fall from the glory years.
Speaker 2 (02:11):
The main reason for the four B man Setire is
copying margin compression everywhere that it is.
Speaker 1 (02:16):
So what is the key learning here?
Speaker 2 (02:18):
Margin compression is what happens when a business's costs rise
faster than its revenues.
Speaker 1 (02:22):
For Setire, it's the worst of both retail worlds.
Speaker 2 (02:25):
Yeah, their costs are up, their revenues are flat, and
discounts are hurting their profits as well. So b man,
that means even when Setaire do make a sale, they're
earning less profit from every dollar.
Speaker 1 (02:35):
And does it boit? Margin compression is a major red
flag for investors.
Speaker 2 (02:39):
Yeah, it shows that the business is either losing its
pricing power or it can't control its costs at all.
Speaker 1 (02:44):
And in retail post COVID, it's not about growth it
or costs anymore. It's really about sustainable profit.
Speaker 2 (02:50):
So it's no surprise Setaire's share price dropped twenty five
percent just last week.
Speaker 1 (02:54):
For our second story, Tesla has seen its profits plummet
seventy one percent, but it's share price still jumped more
than five percent.
Speaker 2 (03:01):
Jeez, that sounds strange. There must be more to this story,
be man, so tell me more. Well.
Speaker 1 (03:05):
We know, Tesla is the og electric vehicle poster child.
Speaker 2 (03:08):
YEP. It was founded back in two thousand and eight
and co founded by the zany, unhinged and wild Elon Musk.
Speaker 1 (03:13):
And we've already spoken about how Tesla has battled with
a decline in sales, So be.
Speaker 2 (03:18):
Man, it's fair to say we didn't realize how bad
things were looking.
Speaker 1 (03:21):
We're talking to seventy one percent drop in profits compared
to last year, and that is down to four hundred
and nine million US dollars.
Speaker 2 (03:28):
And be man, they had a thirteen percent slide in
car deliveries as well, which is their worst result since
twenty twenty two.
Speaker 1 (03:34):
And while the cars haven't changed, the vibe around the
brand definitely has.
Speaker 2 (03:37):
Yeah, plenty of people reckon Elon's political escapades have rubbed
Tesla buyers up the wrong.
Speaker 1 (03:42):
Way, as well as a whole lot more competition in
this ev market.
Speaker 2 (03:46):
Yeah, get this. Tesla sales dropped sixty percent in Germany
this January.
Speaker 1 (03:49):
And they were down thirty percent here in Australia.
Speaker 2 (03:51):
So be man. It's no surprise that Elon Musk will
now be stepping back from the US Government's Department of
Government Efficiency aka DOGE, and I'm in the back of
this news. Tesla's share price actually jumped five.
Speaker 1 (04:03):
Percent because finally Elon can focus on Tesla and hopefully
for investors, stay away from the headlines. So what is
the key learning here When a CEO is a huge
part of their company's brand, that every move can shake
public opinion and perception for better or worse. In Tesla's case,
Elon Musk has ridden the highs and lows of Tesla
since it launched, Like the time he posted that he
(04:23):
would take Tesla private for four hundred and twenty US
dollars per share a.
Speaker 2 (04:27):
Reference to smoking marijuana, all.
Speaker 1 (04:29):
The time he threw a sledgehammer at his cyber truck
to demonstrate its bulletproofness.
Speaker 2 (04:34):
Man. With his focus on DOGE the Government Department, investors
have grown concerned over his lack of focus.
Speaker 1 (04:39):
And the impact that Doge is having on brand Musk.
Speaker 2 (04:42):
Which is effectively brand Tesla.
Speaker 1 (04:45):
So Jazi boy. Since Musk joined Donald Trump in the government,
Tesla's share price has taken a whack of near forty percent,
and these poor.
Speaker 2 (04:51):
Profit announcements aren't building confidence in the brand either.
Speaker 1 (04:54):
So clearly Muskie Musk understands its time to focus on
his companies before it's potentially too late.
Speaker 2 (05:00):
For our third and final story, open Ai, the owner
of chat JPT, wants a slice of Google's Chrome if
Google's forced to sell Chrome by the courts.
Speaker 1 (05:09):
Shots have been fire, Tell me more, juzzy boy.
Speaker 2 (05:12):
Okay, so be man. We spoke last week about how
US courts have ruled Google has illegal monopolies.
Speaker 1 (05:17):
Both in online search as well as advertising technology and.
Speaker 2 (05:20):
Be man, Well, it's not clear what the outcome will
be from the judge. It could result in the breakup
of Google.
Speaker 1 (05:25):
And now OpenAI has entered the chat Yeah.
Speaker 2 (05:28):
Open AI's head of products said they'd be keen to
buy Google's Chrome if the court forced Google to sell it.
Speaker 1 (05:33):
Now OpenAI says it previously offered to integrate Google Search
into chat JBT, but Google said nowe jose.
Speaker 2 (05:39):
Yep we've got Gemini and be man. In the hypothetical
case that open ai did buy Chrome, it could be
a game changer.
Speaker 1 (05:46):
Well, it would allow them to skip the middle man
like Google when it comes to getting customers.
Speaker 2 (05:51):
So what is the key learning here?
Speaker 1 (05:52):
Vertical integration happens when a company controls multiple stages of
its supply chain or product delivery.
Speaker 2 (05:59):
Think of the example of a coffee company. If they're
vertically integrated, they might own the farm, the roastery, and
the cafe as well.
Speaker 1 (06:05):
And for technology, it's when the company owns the backhand software,
the customer facing platform, and the underlying data as well,
and a man.
Speaker 2 (06:11):
Google is the poster child for vertical integration.
Speaker 1 (06:14):
It owns the Chrome browser, it owns the Android operating system,
it owns Google Search Engine.
Speaker 2 (06:19):
And baman. That kind of integration is super powerful, but
it's also what regulators argue is anti competitive.
Speaker 1 (06:24):
On the other hand, open ai right now relies on
partnerships to reach those users.
Speaker 2 (06:28):
Through Microsoft's Edge browser or their iOS integrations.
Speaker 1 (06:32):
So if OpenAI did acquire Chrome, it would gain a
direct user base, but b man.
Speaker 2 (06:37):
It kind of feels like open ai would start building
its vertically integrated empire of its own.
Speaker 1 (06:42):
So while this may sound good in theory, if you
bet that the regulators will be having none of this.
Speaker 2 (06:47):
Buck sam Every single month your credit score gets updated,
to make sure to check it out. See your credit
score in April.
Speaker 1 (06:53):
Thanks for listening, and we'll see you on Wednesday.
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